Contract-Related Risk Item

A Contract-Related Risk Item is a risk issue arising from contractual agreements.

• AKA: Contract Issue.
• Context:
  • It can range from being a Contract-Related Legal Risk Issue to being a Contract-Related Financial Risk Issue, based on risk type.
  • It can range from being an Organizational Contract-Related Risk Item to being an Personal Contract-Related Risk Item.
  • It can range from being a Minor Contract-Related Risk Issue to being a Major Contract-Related Risk Issue, based on impact severity.
  • It can range from being an Internal Contract-Related Risk Issue to being an External Contract-Related Risk Issue, based on risk source.
  • It can range from being a Simple Contract-Related Risk Issue to being a Complex Contract-Related Risk Issue, based on resolution complexity.
  • ...
  • It can be monitored through Contract-Related Risk Monitoring and measured by Contract-Related Risk Management Measures.
  • It can be managed through Contract Risk Management Methods, such as:
    • Contract Risk Assessment Methods: risk identification, risk analysis, and risk evaluation
    • Contract Risk Control Methods: risk mitigation, risk transfer, and risk avoidance
    • Contract Risk Monitoring Methods: risk tracking, risk reporting, and risk review
  • It can manifest as Contract Risk Types, such as:
    • Organizational Contract Risk Types:
      • Organizational Legal Risks: affecting organizational rights and organizational obligations
      • Organizational Financial Risks: affecting organizational value and organizational assets
      • Organizational Operational Risks: affecting business execution and business performance
      • Organizational Strategic Risks: affecting business objectives and business relationships
    • Personal Contract Risk Types:
      • Personal Legal Risks: affecting individual rights and individual obligations
      • Personal Financial Risks: affecting personal assets and personal liabilitys
      • Personal Operational Risks: affecting individual performance and personal responsibilitys
  • It can arise during Contract Lifecycle Phases, such as:
    • Contract Formation Phase: drafting risks and negotiation risks
    • Contract Execution Phase: performance risks and delivery risks
    • Contract Management Phase: compliance risks and monitoring risks
    • Contract Termination Phase: closure risks and transition risks
    • ...
  • It can be referenced in a Contract-Related Issue Spotting Rule.
  • ...
• Example(s):
  • Organizational Contract-Related Risk Issues, such as:
    • Organizational Legal Risk Issues, such as:
      • Corporate Liability Risk Issues, such as: Confidentiality Breach Risk Issue and Performance Breach Risk Issue
      • Regulatory Compliance Risk Issues, such as: Legal Requirement Risk Issue and Policy Compliance Risk Issue
      • Contract Validity Risk Issues, such as: Formation Risk Issue and Enforceability Risk Issue
    • Organizational Financial Risk Issues, such as:
      • Business Payment Risk Issues, such as: Non-Payment Risk Issue and Late Payment Risk Issue
      • Currency Exchange Risk Issues, such as: Exchange Rate Risk Issue and International Payment Risk Issue
    • Organizational Performance Risk Issues, such as:
      • Business Delivery Risk Issues, such as: Timing Risk Issue and Quality Risk Issue
      • Obligation Risk Issues, such as: Unrealistic Obligation Risk Issue and Undefined Obligation Risk Issue
    • Organization-Specific Risk Issues, such as:
      • Private Organization Risk Issues, such as: Vendor Risk Issue and Client Risk Issue
      • Public Organization Risk Issues, such as:
        • Public Procurement Risk Issues, such as: Compliance Risk Issue and Political Risk Issue
        • Government Contract Risk Issues, such as: Regulatory Risk Issue and Policy Change Risk Issue
      • Non-Profit Organization Risk Issues, such as: Grant Risk Issue and Funding Risk Issue
    • Contract Structure Risk Issues, such as:
      • Language Risk Issues, such as: Ambiguous Term Risk Issue and Missing Term Risk Issue
      • Interpretation Risk Issues, such as: Conflicting Term Risk Issue and Unclear Provision Risk Issue
      • Legal Structure Risk Issues, such as: Missing Provision Risk Issue and Force Majeure Risk Issue
  • Personal Contract-Related Risk Issues, such as:
    • Personal Legal Risk Issues, such as: Individual Liability Risk Issue and Personal Compliance Risk Issue
    • Personal Financial Risk Issues, such as: Personal Payment Risk Issue and Personal Asset Risk Issue
    • Personal Performance Risk Issues, such as: Individual Delivery Risk Issue and Personal Capability Risk Issue
  • Cross-Border Contract Risk Issues, such as: Jurisdiction Risk Issue and Applicable Law Risk Issue
  • Technology Contract Risk Issues, such as: Software License Risk Issue and IT Service Risk Issue
  • ...
• Counter-Example(s):
  • Contract Opportunity (potential benefit rather than risk)
  • Non-Contract Risk (risks not related to contracts)
  • General Business Risk (not specific to contracts)
  • Balanced Responsibility Clause Issues, where responsibilities and liabilities are fairly distributed and clearly stated, reducing the risk of unfair obligations.
  • Comprehensive Provision Issues, where all necessary clauses, such as indemnities and warranties, are included, ensuring the contract is robust and mitigates potential risks.
  • Opportunity Risks, ...
• See: Contract Clause, Risk Management, Legal Compliance, Dispute Resolution Mechanism, Organizational Risk Management

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